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http://dx.doi.org/10.15207/JKCS.2020.11.12.187

The Effect of International Diversification on Dividend Payout ratio and Dividend Yield Rate  

Choi, Yu-Jeong (Management Support Office, Korea Institute for National Unification)
Lim, Jae-Hwan (Department of Aviation Management & Logistics, Catholic Kwandong University)
Publication Information
Journal of the Korea Convergence Society / v.11, no.12, 2020 , pp. 187-197 More about this Journal
Abstract
In this study, how international diversification of domestic companies increases corporate profits and increases the dividend income of paid-in capital investors, who provided the basis for corporate business activities in the process of distributing profits. I tried to find out if it had an effect. An empirical analysis was conducted using a fixed-effect model for companies with settlements at the end of December listed on the domestic securities market from 2011 to 2018. It was confirmed that the higher the level of international diversification of individual companies, the higher the company's dividend payout ratio and dividend yield. This means that companies can steadily expand corporate profits and dividend yield of shareholders by securing new overseas markets through international diversification, it can be seen that a company's international diversification strategy can contribute to the increase of corporate value by increasing the company's dividend payout ratio by increasing dividendable profit.
Keywords
International Diversification; Dividend Payout ratio; Dividend Yield Rate; Panel Data; Fixed-effect Model; Hausman Test;
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Times Cited By KSCI : 2  (Citation Analysis)
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